Which banks are still paying for past errors?

ROYAL Bank of Scotland’s ninth year of mammoth losses has confirmed an ever-widening gap with rivals in a sour end to the sector’s annual results season.

Here some key questions are answered on a mixed set of results from Britain’s biggest banks. Q: Why is Lloyds performing so well while RBS remain firmly in the doldrums? A: Prior to the financial crisis, RBS expanded globally, holding US operations and buying up Dutch bank ABN Amro in 2007, resulting in a precarious capital of RBS is improving, the financial burden caused by the errors of the past has generated a significant loss.

“British taxpayers have had to stump up huge support for RBS. They need to know that there has been a significant change in the position by the time the crunch came.

Lloyds, meanwhile, was domestically focused and its problems stemmed from bad commercial property loans and its takeover of HBOS.

In short, RBS started with bigger issues than Lloyds at the time of their respective bailouts. Q: Why is RBS still so deep in the red? A: RBS continues to be hamstrung by fines, restructuring costs and EU rules on state aid.

The group’s results were hit after it set aside another £3.1 billion ahead of an expected settlement from US authorities regulation and culture of banking to prevent this happening again.”

Addressing the bank’s concerns over a future second independence referendum – described as “all but inevitable” by Nicola Sturgeon – Scottish Conservative shadow and the group has been mired in controversy over its treatment of struggling businesses. Q: How did the other major banks fare last year? A: Barclays also seems to be well on the path to recovery after a swingeing overhaul comes to a close, with group profits nearly trebling last year.

Like Lloyds, it is turning a corner after the PPI saga and past misdeeds.

But HSBC is still paying for its mistakes, as it revealed it is facing a UK investigation over financial crime controls and remains under pressure from US authorities after its £1.2bn US finance secretary Murdo Fraser said: “Whatever the questions thrown up by Brexit, they are not answered by another divisive separation vote.

“The banking industry has already been put through the mill with the uncertainty sparked by money laundering fine nearly five years ago. Q: What’s the prospect for jobs and branches? A: The massive staff cuts seen among the big UK players are far from over, as RBS confirmed with its announcement of further cost cutting.

HSBC and Lloyds only recently took the axe once more to their workforces and have confirmed that costs will continue to be slashed.

Barclays is lifting its hiring freeze, but the rise of internet banking means branch networks and workforces will continue shrinking across the sector. the original referendum.

“Now there’s a risk of history repeating itself. The Scottish National Party should heed these warnings and, if for no other reason, take the threat off the table for the sake of financial stability.” independence